How can the long term debt of a company keep changing even though they are not repaying any of the old debt or borrowing any more. I am looking at Dell’s statements and their long term debt is continiously changing abd even jumped by 200 million between Q4 '07 and Q1 '08 even though the cash flow statement shows no cash inflow from borrowings or repayment of debt . Any clues ??
Some due to variable debt maybe???
They have to mark-to-market their debt. The value of the debt changes all the time.
Based on the value of the bonds trading in the market ?
The debt may have arised due to exchange of some assets.in such cases cashflow wont affect…clear me if i am wrong. Thanks…Kriss